Joint Development Agreement

[Prasenjit Pal]

Joint Development Agreement was executed between landowner and builder for construction of a residential building ( commercial area exceeds 15% of total capet area) on 31.08.2019. Since then neither construction was started nor commencement certificate was obtained till date. Wheather any GST was payable by virtue of that JDA executed before 01.04.2019 and if applicable wheather as per new scheme as applicable from 01.04.2019 or as per old scheme ?

[Shilpi Jain]

Since the JDA is executed after 1.4.19.... So the new scheme will be applicable. LIability can be paid up to the Completion date.

I think there is some mistake in the query. Pls re-check. Maybe the JDA date is wrongly mentioned

AI Summary

GST applicability for joint development agreements: post-enactment agreements fall under the new scheme; liability payable until completion. JDA executed after 1 April 2019 for a residential building with substantial commercial area triggers application of the new GST scheme; any GST liability under that scheme may be discharged up to the completion date, subject to verification of the JDA execution date.